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To: dmccoach who wrote (23073)	5/29/1998 11:14:00 PM
From: Grommit	Respond to of 95453

HMAR -- In the last Conf Call a few weeks ago, they said they were comfortable with the analyst estimates of $2.24 for the year. Message 4351109 It all depends on dayrates. No one knows. They are diversified a bit to buffer gulf risks. 50% of revenue is offshore energy support. (The rest are tugs and marine transportation.) Of the energy business, 70% are supply boats (the ones with the humungo day rates and lofty margins). 70% of the supply boats are GOM. So overall revenue of supply boats in the gulf is 50% * 70% * 50% = 25% of total revenue. Mr. Hvide claims dayrates still strong and expected summer boats builds of competitors will not be a problem. Says they can move supply boats to maximize worldwide margins if need be. PS - I figure that of 1997 EBITDA of $62 million, $10 - $15 million reflect windfall profits from unjustifiably high dayrates. These windfall profits are continuing so far this year. Message 4560007

To: dmccoach who wrote (23073)	6/1/1998 11:13:00 AM
From: Robert Floyd	Respond to of 95453

1. I believe the price has experienced a temporary downturn and expect that HMAR can weather this without creating a cash flow crunch. 2. Even if the rates HMAR can charge does experience a downturn, due to reduced exploration, I believe HMAR can remain profitable. 3. I believe interest rates are at bottom and will increase in the near and long term. HMAR has highly leveraged itself. I believe it did this at a good time when they were able to get favorable rates. 4. The price to potential earnings ratio is very attractive. 5. An added bonus is that it is trading close to book value...although there is a sizable fraction of non-tangible assets involved in coming up with this "book value."